2 Second Amendment Stocks Rated BUY

[Image by Alderon under CC 2.0]

Gun ownership is a hot topic at any given time, especially during the election year. There aren’t many publicly traded U.S. firearms manufacturers, but the two that are both have a BUY rating from Weiss and appear to be doing well.

Smith & Wesson Holding Corporation (SWHC), one of the well-known names in the U.S., currently holds a B- investment rating from Weiss. It has a whopping 743.6 percent five-year total return. The one-, and three-year periods don’t lag either, performing well above the average, with 41.9 percent and 143.2 percent in total returns, respectively.

The quarterly year-over-year revenue growth also shows some impressive numbers. Based on the latest filing, Smith & Wesson grew 64.3 percent since the same period last year. At the beginning of 2016, the company recorded a 119.3 percent year-over-year growth in revenue.

Sturm, Ruger & Co. Inc. (RGR) is another B- (BUY) rated U.S. firearms manufacturer with a five-year return of 140.5 percent and a 2.67 percent dividend. The one-, and three-year returns are in the positive for Ruger, but not as impressive as Smith & Wesson’s, at 2.98 percent and 0.99 percent, respectively. The year-over-year revenue growth is at 26 percent, as of the latest filing.

The two companies above are the only BUY firearm manufacturers rated by Weiss. You may ask about other domestic and international companies, such as Glock, Heckler & Koch, Colt, Beretta, and several others? Those are private companies and are not available for the public to invest.

Besides Smith & Wesson and Sturm, Ruger & Co, there is the lower rated and very new Vista Outdoor Inc. (VSTO). The company was founded in 2014 and has a C investment rating. It is not strictly a firearms manufacturer, it’s more of a hunting and fishing product manufacturer and marketer. It sells firearms in its retail stores and would certainly be impacted by any possible changes to the gun regulation or laws.

Cabela’s Incorporated (CAB) is more in line of Vista Outdoor business model. It operates as a retailer and has a financial services segment. Cabela is a C (HOLD) rated company with a 154.7 percent five-year total return.

Smith & Wesson and Ruger are in an industry where laws and regulations can heavily impact their business. And, with the Presidential election just around the corner, many are wondering what will change, if anything.

Keep an eye on these stocks by adding them to your Watchlist and we will let you know if any changes in ratings take place.

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